Tax representative for VAT in Switzerland

Tax Representation in Switzerland

Since January 1, 2018, all foreign businesses (European and international) providing services in Switzerland and generating an annual worldwide turnover of at least CHF 100,000 from VAT-taxable services must register with the Swiss Federal Tax Administration (FTA). This worldwide turnover threshold, effective since that date, determines the VAT liability.

Our tax representation services in Switzerland include:

• Tax representation for Swiss VAT returns.
• Periodical reviews of accounting documents.
• Recovery of input VAT in Switzerland.
• Annual reconciliation of turnover and input tax (taxable turnover in Switzerland).
• Handling all correspondence related to VAT.
• Administrative management with customs for imports.

My Swiss Company SA provides tax representation for your VAT returns in Switzerland. As your tax representative, we are responsible to the tax authorities for all procedures and formalities related to Swiss VAT. This ensures that any international business remains in full compliance with its tax declaration obligations in Switzerland.

As your tax representative, we manage all correspondence, communications, and information requests from the Swiss tax authorities and customs on behalf of your business. Your tax representative acts as the primary contact person for all of Switzerland and provides workspaces for any VAT inspections by the tax authorities related to your tax return obligations.

Using a Tax Representative for VAT in Switzerland

Foreign companies with an annual worldwide turnover of at least CHF 100,000, deriving from taxable services in Switzerland, must register for Swiss VAT with the Federal Tax Administration (FTA).

This provision, which came into force on January 1, 2018, is accompanied by the obligation to appoint a tax representative established in Switzerland for taxable foreign companies that do not have a domicile, registered office, or permanent establishment on Swiss soil. To meet this legal requirement, we offer our services to support your company’s development by becoming your tax representative in Switzerland.

VAT Tax Representative in Switzerland: Who Needs One?

According to the new provisions of the Swiss VAT Act, which came into force on January 1, 2018, all foreign companies providing services or supplies subject to tax in Switzerland are legally obliged to be VAT registered. From now on, VAT liability is no longer determined based on a turnover of CHF 100,000 generated only in Switzerland, but on a worldwide turnover of CHF 100,000, provided that a part of this turnover is generated in Switzerland. To meet this legal obligation, foreign companies that do not have a domicile, registered office, or permanent establishment in Switzerland must mandatorily appoint a tax representative with a registered office in Switzerland.

A prerequisite for registering in the VAT taxpayer register, the tax representative in Switzerland manages the declaration formalities with the Federal Tax Administration (FTA) on behalf of the foreign company. As part of its mandate, My Swiss Company SA, Corporate Services Provider handles:

• Creating the VAT registration file with the FTA.
• Filing periodic declarations on time, upon receipt of necessary documents.
• Paying the VAT due.
• Processing all correspondence with the tax authorities.

Tax Representative in Switzerland: Our Additional Services

As your tax representative, we ensure our clients’ compliance with their tax obligations in Switzerland. From initial taxpayer registration to import management, we handle all steps and procedures related to VAT. Our tax representation services in Switzerland also include:

• Analysis of VAT liability in Switzerland.
• Registration in the Swiss VAT taxpayer register.
• Tax representation for VAT returns.
• Verification of the company’s tax documents.
• Preparation and submission of periodic VAT statements.
• Preparation of the annual reconciliation of turnover (in Switzerland) and input tax.
• Review of tax assessments received.
• Management of VAT recovery in Switzerland.
• Correspondence with the Federal Tax Administration.
• Processing all communications with the tax authorities.
• Administrative management with customs for imports.
• Opening and management of the PCD account (Centralized Customs Clearance Procedure) with the Federal Customs Administration.
• Preparation for and support during a VAT audit by the Federal Tax Administration.
• Provision of all documents useful for the calculation of output tax and input tax (purchase orders and delivery notes, customer and supplier invoices, customs documents, etc.).
• Monitoring of tax regulations at the federal and European Union levels.
• Administrative tax domiciliation services

VAT Registration in Switzerland

To register a company for VAT in Switzerland, the process includes several steps: verifying the registration requirement, preparing and submitting the registration application, and its processing by the FTA. Once the application is approved, the company will receive its VAT identification number by mail. This number is essential and must be stated on all invoices issued in Switzerland, as well as in all business transactions with Swiss customers or with Swiss customs for your final and temporary import operations into Switzerland. This will enable you to reclaim VAT paid on imports.

What are the Responsibilities of a VAT Tax Representative in Switzerland?

A VAT tax representative in Switzerland shoulders significant responsibilities, acting as the primary point of contact for the Swiss Federal Tax Administration (FTA) and Swiss Customs (FOCBS) on behalf of the foreign company. Their daily tasks include meticulous preparation and timely submission of all required VAT declarations, managing communications from the authorities, ensuring accurate record-keeping for VAT purposes, and facilitating any VAT audits. Legally, the representative is jointly and severally liable with the foreign company for compliance with Swiss VAT obligations, making their role crucial for adherence to local tax laws.

How Does a Foreign Company Register for Swiss VAT?

The process for a foreign company to register for Swiss VAT typically begins with assessing the obligation based on the CHF 100,000 worldwide turnover rule. Once confirmed, the company, with the mandatory assistance of a Swiss tax representative, prepares and submits a detailed registration application to the Federal Tax Administration (FTA). This involves providing company details, a power of attorney for the representative, and initial financial information. As your tax representative, My Swiss Company SA streamlines this entire step-by-step process, ensuring all documentation is accurate and submitted efficiently to secure your Swiss VAT identification number.

What is the CHF 100,000 Worldwide Turnover Rule for Swiss VAT?

Effective January 1, 2018, the CHF 100,000 worldwide turnover rule fundamentally changed Swiss VAT liability for foreign companies. Previously, only turnover generated within Switzerland counted towards the threshold. Now, if your company generates a global turnover of CHF 100,000 or more from services subject to VAT, and any part of that turnover is generated in Switzerland, your company becomes liable for Swiss VAT. This means even a small amount of Swiss-generated turnover can trigger VAT registration obligations if the global threshold is met, necessitating the appointment of a Swiss tax representative.